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Economic Indicators: Inflation, Employment and Interest rate
Describe how the economic indicators, inflation, employment levels and interest rates, affect the long-term strategy and competitiveness of your firm/business and industry.
Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.
We have learnt that in a perfectly Competitive market, all cost savings from a technological advance are passed along to cnsumer in the form of lower prices
What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss-minimizing) rate? For output rates above the profit- maximizing (or loss-minimizing) rate?
Define the Economics terms, national accounting identity, Hodrick Prescott filter and what it does, Cobb Douglas production function
What is the profit-maximizing price and output? What is the total profit? What is the price elasticity of demand at the profit maximizing output?
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
A scientist wants to determine the half-life of a certain radioactive substance-Based on the data, what is the half-life?
Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.
Discuss how each of the following developments would affect the supply of the money, the demand for money, and the interest rate. For each case, describe what happens in closed economy and in small open economy. Describe your answers with diagrams.
Define and describe the difference between the absolute advantage and the comparative advantage.
Consider the Figure below that represents a perfectly competitive firm
Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
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